It happens so many times – you find your dream home, you believe you have enough income to get a loan, so you sign the contract and pay your deposit. Hey it’s off the plan there’s plenty of time to get a loan right? Not always.
If you are borrowing more than 80% of the loan amount, than paying your deposit straight to the real estate can have dire consequences if you did not hold that deposit in your account for 3 months prior to doing so.
If you are not currently renting with your or your partners names exclusively on the lease, then it is likely that if you find yourself in this situation: none of the mainstream banks will grant you a loan, unless you can put another 5% in your account and keep it there for another 3 months – even though you have already paid a substantial sum to the realtor.
As you cannot undo paying a deposit, or taking funds out of your account, many people are surprised to know, that if they are borrowing 95% than most lenders and insurers will not approve them for a loan based on that reason alone – even if everything else stacks up.
It sounds somewhat cruel but is the reality of the situation – so don’t put yourself into this scenario – speak with a qualified finance broker from Bee Finance Savvy BEFORE you sign on the dotted line and hand over your hard earned cash.
Of course there are ways around this if its too late and you’ve already fallen into this pitfall, but it will end up costing you a few thousand extra from an alternative lender.
To avoid entering a contract before gaining an approval or the confidence that you can achieve one, contact Bee Finance Savvy on 1300 140 554 or firstname.lastname@example.org. We will assess your situation upfront, obligation free WITHOUT marking your credit file.
You can also see what other happy customers have had to say about us here – https://www.womo.com.au/reviews/Bee-Finance-Savvy-Miranda